Building and pest inspections: look before you leap

Paul Best

Building inspections include a visual check of the entire property, inside and out. Photo: Supplied

For one Camberwell couple, their decision not to have a pre-purchase property inspection turned out to be an expensive one.

Their 100-year-old Victorian home's slate tile roof was basically shot, and they faced an unexpected bill of more than $40,000 to replace it.

It’s also a cautionary tale for property buyers. For several-hundred dollars – the cost of building and pest inspections – on a several-hundred-thousand-dollar investment, the couple might have avoided their nasty little surprise.

They’re not alone. According to Cameron Frazer, Archicentre’s commercial and community general manager, only about 30 per cent of home buyers have a pre-purchase inspection done, even though anecdotally 70 per cent “intend to”.

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“The process of buying, renovating and maintaining a property is the biggest cost you’re ever likely to face and yet people don’t make rational decisions,” says Frazer. “For a relatively small price, you have enormous peace of mind before you drop half a million on a house.”

And in many instances, it’s much, much more. But, by the same token, you may miss out on the property at auction, so it works best with private sales, where a purchase can be made subject to an inspection.

Essentially, there are two types of pre-purchase inspection – building and pest. The former is a visual inspection of the entire accommodation, both inside and out, that identifies anything from major structural faults to minor defects, maintenance issues and safety hazards.

Externally, it may include drains and gutters, sheds, pergolas, retaining walls and fences, windows and roofing. It’ll also look for major structural problems, such as cracking, rising damp and differential settlement.

It should also investigate roof spaces (for insulation, framing defects) and the sub-floor (leaks, damp, rot).

“We check for over 950 potential defects before we walk out the door,” says Peter Alexander, of SafeHome Building Inspections.

Inspections should not only identify faults and defects but also advise on how to remedy them and provide some idea of costs.

“The report empowers buyers,” says Frazer. “If you know there’s $50,000 of repairs, you know what that does to your budget [and] when bidding on or pricing a property.”

He says it’s worth being on site so inspectors can point out faults.

It also pays to check out the credentials of inspectors. Although there’s an Australian standard for pre-purchase inspections, Alexander – with 11 years’ experience – warns inspectors don’t require any formal qualifications in Victoria.

Frazer says registered architects are covered professionally by insurance, in case anything goes awry. On the other hand, timber pest inspectors – looking for infestations such as termites, borers and fungal decay – need to be licensed.

“Most people get both,” says Alexander, who offers building and pest inspections, as does Archicentre.

Reliable inspections, through qualified architects, builders or engineers, start at a few-hundred dollars but can climb as high as $1000, depending on the size of the property.

“I always recommend clients get a building inspection,” says buyers' advocate Melissa Opie, who recalls a client in Moonee Ponds facing a termite damage bill “in the thousands” after ignoring advice to have a pest inspection.

While she has used reports to negotiate down prices, she says repairs should be factored into the purchase price and buyers should walk away if costs overstep their budget.

Jellis Craig’s Richard Earle acknowledges reports can be used in negotiations “in theory”, although major structural faults are rare.

“If we have structural concerns, as a responsible agency, we’d be on the front foot suggesting the owner get a building report done,” he says.

Frazer believes an inspection should form the basis of a future maintenance plan: “Forewarned is forearmed.”

Anderson agrees. He has sellers and homeowners, carrying out annual check-ups, among his clientele. “There isn’t a house I look at that hasn’t [got] a problem,” he says.